Mergers and Acquisitions
Transaction Details
DD&F CONSULTING GROUP 
Deal Overview
Buyer:  Liberty Bancshares, Inc. (Click for buyer financial information)
Target:  MSB Shares Inc. (Click for target financial information)
Deal Type:  Bank & Thrift Company
Announcement Date 2/20/03   Announced Deal Value ($M) 12.4
Status Completed   Announced Deal Value Per Share ($) 38.00
Completion Date 6/2/03      
 
Deal Summary
Liberty has two branches in the Jonesboro Fed market and MSB nine. The combined company will have a 28.37% share of deposits there. Liberty is acquiring 325,000 outstanding shares in MSB from existing shareholders and will infuse another $9.0 million into the company by simultaneously acquiring 237,000 newly issued shares. MSB, which suffered heavy losses in 2002, had become the subject of supervisory agreements with regulators. Liberty acquired about $2.5 million in MSB debt from First National Corp. in a related transaction and agreed to pay First National an additional sum if Liberty acquired control of MSB.

Deal Pricing Ratios
  Announcement Completion
Price / Book (%) 97.18 97.18
Price / Tangible Book (%) 97.18 97.18
Price / LTM EPS (x) NM NM
Price / Deposits (%) 4.21 4.21
Price / Assets (%) 3.82 3.82
Tang Book Premium / Core Deposits (%) (0.16) (0.16)


Deal Terms

Description of Consideration
Liberty paid $38 in cash or stock for each outstanding share of MSB.
Accounting Method NA   Lockup Agreement No
In-State Transaction? Yes   Strike Price ($) NA
Merger of Equals? No   % of Shares Outstanding NA
Geographic Expansion? Partial Overlap   Shares Under Option NA
Goodwill Generated ($000) 652   Core Deposit Intangibles ($000) NA
Estimated Cost Savings (%) NA   Est. Restructuring Charges ($000) NA
Termination Fee ($000) NA  
         
Consideration Breakout
Cash ($M)   NA
Common Stock ($M)   NA
Common Shares Issued   NA
Preferred Stock ($M)   0
Preferred Shares Issued   0
Debt ($M)   0
Other ($M)   12.4

Deal Advisers

Financial Advisers
Party Advised Adviser Hired? Firm Name
Buyer Yes DD&F Consulting Group
 
Seller No NA
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Mitchell Williams Selig Gates
 
Seller Yes Dover Dixon Horne PLLC
Horne Hollingsworth & Parker

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